I’ve always been intrigued with learning how to buy stocks. To do it right and actually make money, it usually requires that you invest a good chunk of cash. There are a few different micro-investing companies like Stash and Acorns, but they don’t let you invest directly in stocks.
The company started when its founder, Avi Lele, wanted to give his nieces and nephews some stocks for Christmas instead of more toys and such. The problem was that stocks can be expensive. As of this writing, for example, Amazon stock is selling at $1,105 per share.
How to buy stocks online for cheap
To break the cost barrier of investing in stocks, Lele started Stockpile. The company allows you to buy fractional shares for as little as $1 and get the same benefits and risks of investing, just on a smaller level. For example, if you buy $50 worth of Amazon stock when it’s selling at $1,105 per share, you’ll own 0.045 shares.
You’ll still get the same percentage gains or losses as you would with a full share, though. For example, say Amazon’s stock goes from $1,105 to $1,500. That’s a 35.75% increase, so your 0.045 shares would be worth $67.88.
One caveat is that every trade you make comes with a $0.99 fee. But considering that most other brokerage firms charge $5 or more per trade, that’s not bad. And other micro-investing platforms like Stash and Acorns charge a monthly fee even if you just trade once and hold your investment.
Stockpile has more than 1,000 stocks and other investments on its site, so you have plenty of investment options. And if you have kids, you can sign them up and gift them fractional shares to companies they love, like Disney, Netflix, or Facebook.
Enter our Stockpile stock giveaway
I’m really excited about Stockpile. So much that I’m giving away $100 worth of gift cards that you can use to buy stocks with the company — that’s one $50 gift card and two $25 gift cards.
Note that one of the ways to enter the contest is by signing up for a Stockpile account. You don’t have to add any money to your account to be eligible, but Stockpile has given me a special link that gives you $5 to start your new account. So technically, you win something either way. 🙂
If you’ve been wondering how to buy stocks without investing a large chunk of money, Stockpile is the answer. Of course, that $0.99 trading fee can add up if you plan to trade a lot. But it’s much lower than the big brokerage companies charge and you don’t have to worry about recurring fees as time goes on.
Which stock do you want to invest in?